HC stays Centre’s order to close HMT’s Ranibagh unit

Nainital, December 8

The Uttarakhand High Court today stayed a Central government’s order issued last month for the closure of a unit of HMT Watches Ltd at Ranibagh.

Justice Rajeev Sharma issued the order on a petition challenging the legality of the closure of the unit and directed both Union Government and the management of the company to file affidavits in this regard within six months.

In its observation, the court questioned why only government-owned companies were being closed and that too when “Uttarakhand needs industries”.

“It’s a fault of the management and not of the employees,” it said.

Advocate Kartikeya Hari Gupta, arguing on behalf of the petitioner the HMT Kamgar Sangh, said closure of the company’s Ranibagh unit was not legal as it was a source of employment for the people of the state, which needs industries.

He also argued that the two consultant audit companies engaged by HMT to look into its account books did not recommend its closure.

Gupta told the court that the Union government issued the order dated November 17, 2016, through the Ministry of Labour and Industry without proper adjudication of the disputes raised by HMT employees and also without taking into consideration the fact that the revival of the HMT factory was a good employment opportunity for the people of the state. —PTI